ARWR Iron Condor Strategy
ARWR (Arrowhead Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Arrowhead Pharmaceuticals, Inc., founded in 1989 and based in Pasadena, California, is a biopharmaceutical company dedicated to discovering and advancing innovative treatments for complex and challenging-to-treat diseases within the United States. The company's extensive therapeutic pipeline primarily leverages RNA interference (RNAi) technology. Among its advanced clinical programs are: ARO-AAT, a Phase II therapeutic targeting liver diseases associated with alpha-1 antitrypsin deficiency; ARO-APOC3, which is undergoing both Phase 2b and Phase 3 clinical evaluations for hypertriglyceridemia; ARO-ANG3, currently in Phase 2b development to reduce the production of angiopoietin-like protein 3; and ARO-HIF2, a Phase 1b candidate designed to treat clear cell renal cell carcinoma. Arrowhead also has several compounds in earlier clinical development, including ARO-HSD in Phase 1/2a for other liver diseases, ARO-ENaC in Phase 1/2a, aimed at decreasing the epithelial sodium channel alpha subunit in lung airways, and ARO-C3, also in Phase 1/2a, for complement-mediated diseases. Further expanding its diverse portfolio, the company is actively developing ARO-Lung2 for chronic obstructive pulmonary disorder (COPD), ARO-DUX4 for facioscapulohumeral muscular dystrophy, ARO-XDH for uncontrolled gout, and ARO-COV for COVID-19 and other pulmonary-borne pathogens. Beyond its core internal programs, Arrowhead is involved in the progression of JNJ-3989, a subcutaneously administered RNAi therapeutic for chronic hepatitis B virus infection; Olpasiran, intended to reduce apolipoprotein A production; and ARO-AMG1, which targets genetically validated cardiovascular pathways.
ARWR (Arrowhead Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $11.11B, a beta of 1.28 versus the broader market, a 52-week range of 14.3-84.549, average daily share volume of 2.0M, a public-listing history dating back to 1993, approximately 609 full-time employees. These structural characteristics shape how ARWR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places ARWR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a iron condor on ARWR?
An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes.
Current ARWR snapshot
As of June 30, 2026, spot at $82.74, ATM IV 57.60%, IV rank 25.22%, expected move 16.51%. The iron condor on ARWR below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this iron condor structure on ARWR specifically: ARWR IV at 57.60% is on the cheap side of its 1-year range, which means a premium-selling ARWR iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 16.51% (roughly $13.66 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ARWR expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARWR should anchor to the underlying notional of $82.74 per share and to the trader's directional view on ARWR stock.
ARWR iron condor setup
The ARWR iron condor below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ARWR near $82.74, the first option leg uses a $87.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARWR chain at a 17-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 ARWR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $87.50 | $1.78 |
| Buy 1 | Call | $90.00 | $1.48 |
| Sell 1 | Put | $77.50 | $2.33 |
| Buy 1 | Put | $75.00 | $1.43 |
ARWR iron condor risk and reward
- Net Premium / Debit
- +$120.00
- Max Profit (per contract)
- $120.00
- Max Loss (per contract)
- -$130.00
- Breakeven(s)
- $76.30, $88.70
- Risk / Reward Ratio
- 0.923
Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit.
ARWR iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on ARWR. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$130.00 |
| $18.30 | -77.9% | -$130.00 |
| $36.60 | -55.8% | -$130.00 |
| $54.89 | -33.7% | -$130.00 |
| $73.18 | -11.6% | -$130.00 |
| $91.48 | +10.6% | -$130.00 |
| $109.77 | +32.7% | -$130.00 |
| $128.06 | +54.8% | -$130.00 |
| $146.36 | +76.9% | -$130.00 |
| $164.65 | +99.0% | -$130.00 |
When traders use iron condor on ARWR
Iron condors on ARWR are a delta-neutral premium-collection structure that profits if ARWR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
ARWR thesis for this iron condor
The market-implied 1-standard-deviation range for ARWR extends from approximately $69.08 on the downside to $96.40 on the upside. A ARWR iron condor is a delta-neutral premium-collection structure that pays off when ARWR stays inside the inner short strikes through expiration; the wing width should reflect the trader's tolerance for the maximum loss scenario where the underlying breaches an outer strike. Current ARWR IV rank near 25.22% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on ARWR at 57.60%. As a Healthcare name, ARWR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARWR-specific events.
ARWR iron condor positions are structurally neutral / range-bound; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. ARWR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ARWR alongside the broader basket even when ARWR-specific fundamentals are unchanged. Short-premium structures like a iron condor on ARWR carry tail risk when realized volatility exceeds the implied move; review historical ARWR earnings reactions and macro stress periods before sizing. Always rebuild the position from current ARWR chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on ARWR?
- A iron condor on ARWR is the iron condor strategy applied to ARWR (stock). The strategy is structurally neutral / range-bound: An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes. With ARWR stock trading near $82.74, the strikes shown on this page are snapped to the nearest listed ARWR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ARWR iron condor max profit and max loss calculated?
- Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit. For the ARWR iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 57.60%), the computed maximum profit is $120.00 per contract and the computed maximum loss is -$130.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ARWR iron condor?
- The breakeven for the ARWR iron condor priced on this page is roughly $76.30 and $88.70 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current ARWR market-implied 1-standard-deviation expected move is approximately 16.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a iron condor on ARWR?
- Iron condors on ARWR are a delta-neutral premium-collection structure that profits if ARWR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current ARWR implied volatility affect this iron condor?
- ARWR ATM IV is at 57.60% with IV rank near 25.22%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.